Highlights
- Trump Media and Technology Group is considering spinning off Truth Social into a new listed company.
- TMTG agreed a $6 bn deal with Google-backed fusion energy company TAE Technologies two months ago .
- Shares in TMTG have fallen more than 50 per cent over the past year despite pivots into cryptocurrency and digital tokens.
The announcement comes two months after TMTG agreed a $6 bn deal to combine with Google-backed fusion energy company TAE Technologies.
The company said it hoped to begin work later this year on a power plant designed to meet the soaring energy demands of artificial intelligence.
If the spin-off proceeds, Truth Social would merge with a special purpose acquisition company called Texas Ventures III, managed by Yorkville Advisors , one of the brokerages that has done extensive work for vehicles affiliated with the Trump family.
Shares continue falling
The latest pivot comes as TMTG's shares have fallen more than 50 per cent over the past year, leaving investors frustrated.
At the end of December, the company began offering digital tokens to investors who acquired its stock, but the move did little to bolster share prices.
Last May, Yorkville Advisors helped TMTG raise $2.5 bn to buy bitcoin as the company sought to capitalise on enthusiasm for digital assets but bitcoin's price has since plunged more than 40 per cent from its peak of around $125,000 in October.
Despite the company's financial struggles, Truth Social remains a powerful political tool. president Trump uses the platform to make important policy announcements, post videos and share memes.
Last month he used Truth Social to post December's US jobs figures hours before their official release, providing an early glimpse at market-moving data.
However, three weeks ago Trump drew strong criticism from both Democrats and Republicans after posting a video containing a racist meme depicting Barack and Michelle Obama as apes , a post that was later removed.
Yorkville Advisors, TMTG's fourth largest shareholder with a roughly 2.4 per cent stake, helped the company go public through a 2024 merger and raised more than $1 bn through share offerings last year.
